Nearly half of retirees who have come of pension age post-pension freedoms do not want to consult an adviser, despite a large number regretting previous retirement decisions, new research from 7IM has revealed.
According to the investment manager, which surveyed 505 full or semi-retired UK adults, 47% of those between 55-64 years of age (Generation F), do not believe it’s important to meet with a professional adviser. However, this age group were also disproportionately likely to regret their retirement decisions, compared with those aged over 65.
7IM said, where given the chance, 43% of Generation F retirees would do things differently, compared to just 29% of those aged 65 and over.
The vast majority (87%) of Generation F said the most important consideration for their retirement was a straightforward retirement solution, while 86% want their retirement income to be tax efficient.
A further 68% said they would like guaranteed income with regular payout throughout retirement and 64% want to be able to take their retirement income flexibly as circumstances change.
Verona Kenny, managing director, intermediary at 7IM, said: “It’s alarming to see that so few of Generation F believe it’s important to seek financial advice in or at retirement, particularly as they tend to have goals which clearly would benefit from professional financial advice. To compound matters they are also the group most likely to regret their retirement decisions
“As an industry we know that proper financial advice underpinned by robust solutions can lead to better retirement outcomes for clients but what our research shows is that we all need to do more and get it together to demonstrate the value we can deliver to this generation.”
“Indeed, with the FCA’s plans for a thematic review of retirement income advice, which has been driven by the vital need for good advice by consumers at the point they first access their pension savings and on an ongoing basis, we have the perfect opportunity to really get it together to solve the retirement puzzle for not only Generation F but all retirees.”
